Amara Raja Energy & Mobility (500008) Q4 01/02 earnings summary

Executive summary

• FY2001-02 gross sales reached a record Rs 1,882.2 million, up 21.4% YoY; automotive battery volumes grew 131% as industrial battery share also advanced.

• New Tirupati automotive plant began the first phase of capacity expansion toward 1 million batteries annually; a Battery Excellence Centre for testing, design and R&D opened at the site.

• Amaron sales exceeded 250,000 units in calendar 2001 and grew more than 150%; exports gained traction in Asian, Indian Ocean Rim and European markets.

Financial highlights

• Gross sales Rs 1,882.2 million, up 21.4%; net sales Rs 1,521.7 million, up 21% YoY.

• PBT Rs 247.35 million, up 5.2%; PAT Rs 182.23 million versus Rs 205.32 million, after Rs 45.44 million deferred tax expense.

• Recommended dividend Rs 3.50/share, absorbing Rs 39.86 million; transfer to general reserve Rs 18.22 million.

• Capital expenditure included Rs 433.86 million of fixed-asset additions; gross block rose to Rs 1,410.59 million from Rs 977.11 million.

Outlook and guidance

• 2002 was expected to remain challenging; priorities included continued R&D investment, market-share gains, brand development and maintaining a strong balance sheet.

• Telecom demand was expected to revive with further investment and replacement needs; UPS growth and VRLA adoption across power applications were seen as opportunities.

• Planned product work included mid-range JIS UPS batteries, motorcycle batteries, broader JIS automotive range and special VRLA products; a staff training centre was expected to open in FY2002-03.

• Export plans targeted sustainable business in Asia, Europe and other markets, with Johnson Controls support for market access.